11.02.2008, 22:07
Basic Element Will Form Integrated Construction Sector
OREANDA-NEWS. On 11 February 2008 Basic Element announced the creation of an integrated Construction Sector. The new sector will be a merger between the existing Construction and Materials Sector and the Infrastructure and Development Sector. The decision to merge two Sectors represents Basic Element’s strategy to ensure the most efficient management of its assets in the construction industry.
The Construction Sector will be comprised of Basic Element companies Glavstroy, BaselCement, Transstroy, Altius Facility Management and Altius-Development. The sector will oversee projects such as the construction of Olympic sites in Sochi, the development of a major 5.5 mln sq. meter residential district in St. Petersburg and the reconstruction of the Apraksin Dvor shopping mall. It will also oversee BaselCement's recent joint venture with Austria's Strabag, slated to become one of the largest cement producers in Russia former CIS States and Eastern Europe.
LJ Mahon and Douglas Lund will co-manage the newly created Construction Sector.
LJ Mahon, who previously headed the Infrastructure and Development Sector, will be responsible for strategy, financing and public-private partnership projects, while Douglas Lund, the head of the Construction and Materials Sector, will focus on coordination of activities by the Sector companies, on development of real estate construction projects, and on production of construction materials.
"The new company is operating across all segments of the construction market, which includes production of construction materials, housing and commercial construction and participation in major projects dealing with transport infrastructure development. This new management structure will make Basic Element’s operations in this sector more transparent for investors," said LJ Mahon.
"The merger of these sectors will allow for a more concentrated focus on the financial legal commercial functions and the engineering technical logistical functions of the Sector which will streamline the management of Basic Element's construction companies. We hope that this more effective management will make the company’s assets more attractive to potential partners and investors, and will enable us to achieve the strongest possible synergy within the Sector In the long term, this initiative will facilitate a more efficient and successful listing of our companies," said Douglas Lund.
The Construction Sector will be comprised of Basic Element companies Glavstroy, BaselCement, Transstroy, Altius Facility Management and Altius-Development. The sector will oversee projects such as the construction of Olympic sites in Sochi, the development of a major 5.5 mln sq. meter residential district in St. Petersburg and the reconstruction of the Apraksin Dvor shopping mall. It will also oversee BaselCement's recent joint venture with Austria's Strabag, slated to become one of the largest cement producers in Russia former CIS States and Eastern Europe.
LJ Mahon and Douglas Lund will co-manage the newly created Construction Sector.
LJ Mahon, who previously headed the Infrastructure and Development Sector, will be responsible for strategy, financing and public-private partnership projects, while Douglas Lund, the head of the Construction and Materials Sector, will focus on coordination of activities by the Sector companies, on development of real estate construction projects, and on production of construction materials.
"The new company is operating across all segments of the construction market, which includes production of construction materials, housing and commercial construction and participation in major projects dealing with transport infrastructure development. This new management structure will make Basic Element’s operations in this sector more transparent for investors," said LJ Mahon.
"The merger of these sectors will allow for a more concentrated focus on the financial legal commercial functions and the engineering technical logistical functions of the Sector which will streamline the management of Basic Element's construction companies. We hope that this more effective management will make the company’s assets more attractive to potential partners and investors, and will enable us to achieve the strongest possible synergy within the Sector In the long term, this initiative will facilitate a more efficient and successful listing of our companies," said Douglas Lund.
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